Critics Want City To Evaluate Allocation Of Tourism Funds

WILLIAMSBURG — Colonial Williamsburg has asked the city for $1.3 million for the new fiscal year; tourism promotion could get $3.86 million from the city.

The City Council prepares to evaluate the budget Monday for the next fiscal year.

As tourism in the Williamsburg area remains sluggish and hoteliers and Williamsburg businesses struggle under low visitor numbers, some say it's time for city leaders to take a hard look at whether taxpayer dollars allocated to promote tourism are being used as effectively as possible.

Colonial Williamsburg has asked for $1.3 million in support of marketing plans for fiscal 2005-2006. But with the number of visitors to CW at its lowest in decades -- and with hoteliers in the area struggling with puny occupancy rates -- some are questioning whether taxpayers are getting the same return on that investment as in years past.

The city gives Colonial Williamsburg more than a million dollars annually to help with marketing, following to reason that funding the city's top taxpayer and crown jewel benefits the entire area. Tourism promotion for the entire city could get a total of $3.86 million.

"Fifteen years ago, CW hotels would fill so far in advance that there was always a tremendous amount of residual business for the hotel industry," said Chris Canavos, owner of the Howard Johnson Hotel and Suites on Pocahontas Trail in Williamsburg. "That is no longer case."

Colonial Williamsburg's paid attendance has declined from a peak of 1.2 million in 1988 to 707,900 in 2004.

In a letter to the city, foundation officials said funds received from the city "would be fully directed toward Colonial Williamsburg's marketing outreach, which seeks to encourage visits to the Historic Area, museums and related facilities and amenities."

But some are calling on city leaders to ensure that funds for CW are being used in the best way to promote the entire area -- not just CW.

"City Council needs to evaluate how to spend those funds so that the entire Williamsburg tourism industry can benefit from it," said Doug Pons, a city planning commission member and general manager of the Quarterpath Inn on York Street.

"Given that we have more options available today, part of their challenge is to determine the appropriate vehicle to fund that which would generate the most business," Pons said.

One option, perhaps, is to allocate funds to the Williamsburg Area Destination Marketing Committee, formed this year to oversee collections from a $2 lodging fee added to Williamsburg area hotel and motel rooms in July. A number of local entities are represented on the committee, including CW, Busch Gardens and the Williamsburg Area Hotel-Motel Association.

But with the committee not yet a year old, Vice Mayor Clyde A. Haulman said that conversation could be premature.

"These are not easy decisions," said Haulman. "But we have to get the best information that we can get and try to make a decision that we think is in the best interest of the city on how we spend the city's dollars." *